Microsoft Power Platform business model and licensing updates
I hope you are well.
I know some of you attended inspire in Vegas and some of you may have even gone to this session. I am not a licensing expert but am learning more and more about how it all fits together. I am leaving this here because it really helped me understand more about how PowerApps and Flow will be licensed.
There is an amazing table on page 18 that does a great job of breaking it all down.
What you are getting here is LIST price and dependant on the program you join, there may be discounts applied. Also PLEASE TAKE NOTE OF THE DATES mentioned in the document.
Hope this helps 🙂
The biggest shock here is for the companies that have already invested in PowerApps and are running canvas apps for a handful of users at £5.30 per user per month (the old P1 plan). These users will not fit into the new 'per app' plan as that requires a minimum of 30 users. Then compared to the new 'per user' plan at £30.20 per user per month, the cost increase in huge.
I think the main problem here being the minimum of 30 users. This basically rules out PowerApps for many small businesses or business with small use cases. For the UK, any team of people wanting to use PowerApps with 30 users is a large team. Even a team of 10 users is a reasonable size (team meaning a set of users with a common goal such as a team of sales staff, not all employees in the business).
I believe Microsoft will have to relax this limit for PowerApps to be the big game changer that it set out to be!
Absolutely agree with your comments. We have a prespect who is only considering BC as a solution becuase of the expanadibilty that the PowerApps provide in delivering a more taylored solution. They will need about 15 users and I am sure the higher cost is probably justifiable but the issue is we already told them about the old prices as the deal has been in flight for several months. Re-quoting is not going to help with frictionless selling. By the time all the monthly costs are added up it will be an expensive solution over the next 2 years. Probably better to go on prem and craft a custom soution for the apps with finance. I think MS are shotting themselves in the foot if they think they can increase revenue by charging much more. Savy users will not come thru the door and the revenues will dip as a result. Then if resellers feel it is not a salable solution they will start looking for alternatives and then the route to market MS have thru resellers will deminish. No customer likes to sign up for a solution and once comitted find they are held to ransom with price hikes. It gives the product a bad name and drives customers and prosepect away. Bad news sells very well and MS would do themselves a favour by stacking high and selling cheap for a bit longer and then gradually increase prices over a few years as the customer base grows.
I couldn't agree with you more. We all know that successful businesses will grab market share and then start to push up prices over time. But increasing prices by over 600% and then pithcing it as a good thing (because you now get all features of PowerApps) is never going to sit well with end users.
Ultimately, this means that all of those 'small app use cases' of creating a little app to solve a business challenge for a handful of users, can no longer be realised using PowerApps. This is real shame because in the space of a few months we've gone from being a mobile app development company, to not really being able to pitch PowerApps due to the increase in cost. Of course we can still use the PowerApps licence when bundled with Dynamics 365 licences, but for new customers just wanting low cost mobile apps, there is now no such thing with the new PowerApps plans. A real shame!
I like it when Microsoft make it just easy to price and quote customers lol AND if you can be an expert on this today it will all changed in a few months 🙂
I know it can be pretty tough to translate, but, I think this makes it a bit easier to unsderstand. Basically, if you translate the guide into 1 sentence it is : "Don't build bad applications that your users can't adopt". 🙂
I actually spent a bit of time absorbing this so if you'd like, we can hop on a call and I can run through my understandoing of it.